International Conference on the Great Lakes Region

Regional Programme of Action for Economic Development and Regional Integration

Project No. 3.3.5

Pre-feasibility Study on the Northern Corridor Railway Extension

March 2006 As Amended 30 August 2006 Original Version: French

Preamble
The proposed project to link the Indian Ocean with the Atlantic Ocean by an integrated system of transport infrastructures which includes the railway from Mombasa to Kisangani with off ramps to Kigali and Bujumbura responds to the concern expressed in the Dar-es-Salaam Declaration adopted in the United Republic of Tanzania, on 20 November 2004, by the Heads of State and Governments to promote regional co-operation in trade, transport, as well in telecommunication, with particular attention to railways. This promotion will be achieved by rebuilding and developing infrastructure to facilitate the movement of goods and people, and as a corollary, the development of trade between the States of the region and beyond. Since the 1980s, some Member States of the International Conference on the Great Lakes Region that are members of the Northern Corridor had already shown, their willingness to cooperate in the transport sector through the signature of the Northern Corridor Transit Agreement (NCTA).

Analytic summary
Countries of the Northern Corridor have been collaborating on the extension of the pipeline from Kenya to the landlocked countries. Moreover, Kenya and Uganda are envisaging giving the joint concession of their railway networks to a single agent who should take over in December 2005. The NCTA Council of ministers held an extraordinary session on 5 August 2004 to examine and agree on the development of the railway sections missing between the countries. The meeting resulted in the decision to extend the railway network to Kisangani in the Democratic Republic of the Congo and thus create a land bridge linking the Indian Ocean to the Atlantic Ocean by a combination of rail and water-ways. While the main rail link would require the extension of the railway from Kasese in the West of Uganda to Kisangani via Beni, Bunia and Komanda, it is also envisaged creating related links to Goma, Kigali, Bukavu and Bujumbura. The agreed rail network is as shown on the attached map. It is proposed to undertake a pre-feasibility study with a view to facilitating decision taking on the next steps of the project. The study will be conducted by a consultant and the cost is estimated at USD 1,121,750.

Major problems to resolve

There are no major problems anticipated in conducting this study as the States committed themselves in the a ministerial meeting held at Nairobi in August 2004

3 and that project coordination and management structures have been clearly defined. Problems might be encountered in the work on the ground given the nature and the extent of the area covered by the project.

Specific constraints to overcome

Some constraints which should be overcome so that the project can go forward under the best conditions are: 1. The organisation of the Steering Committees meetings will have to be well prepared. The budget will have to be made available for this purpose by the member States to enable those responsible for co-ordination to meet whenever necessary. 2. The Great Lakes Region concerned by the project is landlocked and fragile, and this might influence the course of activities.

3. The financing of the study should be mobilised as soon as possible in

order to facilitate the start of the study. TERMS OF REFERENCE FOR PRE-FEASIBILITY STUDY OF THE NORTHERN CORRIDOR RAILWAY EXTENSION I. 1.1. INTRODUCTION About the Northern Corridor and the Transit Transport Coordination Authority (TTCA)

1. The transport corridor linking the Kenyan seaport of Mombasa, on the Indian Ocean coast, with Uganda, Rwanda, Burundi, the Democratic Republic of Congo and Southern Sudan is referred to as the Northern Corridor. It is the busiest corridor in East and Central Africa handling in the region of 12 million tons of import/export cargo of the countries mentioned above. The corridor also handles a substantial volume of intra-regional trade. 2. The Northern Corridor is a multi-modal transport corridor, combining surface modes of transportation, which include road, rail, waterways and pipeline. The corridor route network extends from Mombasa and links major urban centres, which include, Kampala, Kigali, Bujumbura, Goma, Bukavu, Beni, Bunia and Kisangani. 3. In 1985, four countries, namely Kenya, Uganda, Rwanda and Burundi, which rely primarily on the Northern Corridor route and the port of Mombasa, signed the Northern Corridor Transit Agreement (NCTA). Later in 1987, the

4 Democratic Republic of Congo acceded to the Agreement thereby becoming the fifth contracting state. 4. The NCTA provides the basic framework for cooperation among the contracting states in the facilitation of trade and traffic between their respective territories and to and from the sea through the port of Mombasa. The NCTA also provides for cooperation in joint development and maintenance of transport infrastructure and facilities. It also provides for cooperation in customs control, documentation and procedures, as well as regulation of all surface transport modes. 5. In line with the provisions of the NCTA, the Transit Transport Coordination Authority (TTCA) of the Northern Corridor was established in 1986, following the ratification of the Agreement. The TTCA has three basic organs, namely the Authority, the Executive Board and the Secretariat, which is headquartered in Mombasa, Kenya. The Authority constituting a Council of Ministers responsible for transport matters is the highest political organ, which is responsible for overseeing the implementation of the Agreement and adoption of new policies. Its decisions are binding on all the contracting states. Next to the Authority are the Executive Board, which a Committee of high-ranking government officials at the level of Permanent Secretaries and their advisors. The Executive Board plays an advisory role to the Authority. The above two organs are assisted by the Permanent Secretariat, which is based in Mombasa, Kenya and is headed by an Executive Secretary. 6. Recently, two specialized committees have been established, namely: the Infrastructure Development and Management Committee and the Committee on Customs, Trade and Transport Facilitation. In addition, the Northern Corridor Stakeholders Consultative Form, which brings together private and public sector operators, has been in existence since 1999.

1.2.

Context of the Study

7. As indicated above, the NCTA provides the framework for co-operation among its contracting states in various transport related fields, including joint development of transport infrastructure and facilities. In this regard, it should be noted that the member States of the Northern Corridor have had a long history of jointly promoting regional road infrastructure projects, inland waterways, pipeline and rail transport. 8. They are collaborating in the extension of the oil pipeline from Kenya into the land-locked countries. In addition, Kenya and Uganda are pursuing joint concession of their railway systems to a singleagent, expected to take over in December 2005.

5 9. Furthermore, the countries of the Northern Corridor have in principle agreed to transform the corridor into an economic development corridor. The development corridor concept recognizes the interdependence of various sectors of the economy and seeks to create synergies between the development of transport infrastructure and the development of other sectors of the economy, such as agriculture expansion, mining, industrial development, tourism and others. Under this framework, the Northern Corridor countries would like to see that rail transport becomes a backbone of transport infrastructure of the region. It is in this regard that the TTCA Council of Ministers held an extra-ordinary session on 5 August 2004 to discuss and agree on the development of missing railway links between the countries. 10. The outcome of the meeting was the decision to extend the rail network to Kisangani in the Democratic Republic of Congo and in so doing create a land bridge linking the Indian Ocean and Atlantic Ocean through a combination of rail and inland waterways. Whereas the main rail link would entail extending the railway from Kasese in Western Uganda to Kisangani, through Beni, Bunia and Komanda, spur links to Goma, Kigali, Bukavu and Bujumbura are also envisaged. The agreed rail network is as shown in the attached map. 11. The proposed extension of the Northern Corridor rail network has been included in the AU/NEPAD Programme for 2005-2007 and is now part of the NEPAD program for infrastructure development. 12. The extension of the railway to Kisangani in the DRC, with off ramps to Goma, Kigali, Bukavu and Bujumbura, is expected to unlock the economic potential of the Great Lakes region, thereby resulting in the creation of wealth and the reduction of poverty. Throughout the Great lakes region and in the DRC in particular, there is optimism that the project would create trading and business opportunities that could become an ingredient in ending the current conflicts in the region. 1.3. Situation Analysis of Economies of the Region

13. The economies of the Northern Corridor countries are predominantly agriculture based, with some degree of mining, in the case of the D R Congo and manufacturing in the case of Kenya. This implies the economic potential of the region is not yet fully exploited. This fact is perhaps better illustrated by comparing the volumes of imports versus exports. Imports are generally about three times more than exports, both in terms of volumes and value. This fact is further illustrated by the negative balance of payments of these countries, necessitating borrowings, even to support consumption, thereby worsening both the debt and poverty situation. 14. Nevertheless, there are encouraging growth-trends exemplified by Uganda and Rwanda economies. The Kenyan economy is also very stable and

6 has of recent shown positive growth. With peace returning to the Eastern part of the Democratic Republic of Congo, and Southern Sudan, the economic prospects of the Great Lakes region in particular and Northern Corridor countries as a whole, look very promising. The realisation of the proposed railway extension would go a long way in strengthening the economies of the region.

2.0. 2.1.

THE TRANSPORT SECTOR The Northern Corridor Transport Systems

15. The Northern Corridor transport systems are dominated by road and rail transport modes. Road transport accounts for over 70% of all freight and rail transport accounts for less than 30%. Air transport is predominantly for passenger traffic between the member states of the Northern Corridor. However, due to the poor state of road infrastructure in the DRC in particular, and the limited extent of the rail network, goods are transported by rail/road up to Goma, Beni or Bunia and then airlifted to Kisangani, Kindu and other destinations within the eastern part of that country. As a result consumer prices are 3 to 4 times more expensive in places like Kisangani and Kindu. 16. The transport sector is characterized by poor and inadequate infrastructure and services, resulting in high transport costs, high consumer prices and high costs of farm and industrial inputs. Consequently, the economies of the region are less competitive in the global market. 17. Despite the inadequacy of infrastructure and services, the contribution of the transport sector in the national economies ranges from 5 to 10% of the GDP. 2.2. The Northern Corridor Road Transport

18. The Northern Corridor main road network distribution is as depicted in Table 1 below: Table 1: Distribution of the Main Road Network by Country Country Burundi Congo DR Kenya Rwanda Uganda Total Per Cent Paved 320 721 1196 814 1042 4093 61% Unpaved 36 1960 0 0 657 2613 39% Total 356 2641 1196 814 1669 6706 100%

7 19. The above table only depicts the main road route network. While for the entire corridor nearly 40% of the main road network is unpaved, it is interesting to note that in the case of Congo DR; nearly 75% of the network is unpaved. In addition the actual physical condition of the sections listed as paved is extremely poor. 20. The deterioration of rail transport services during the past two decades or so resulted in a large proportion of long distance bulk haulage being diverted to the road network. This has resulted in a lot of pressure being exerted on the road network, leading to a lot of deterioration. Moreover, in most countries, no mechanisms have been put in place to control vehicle overloading. In the case of Uganda and Kenya, where axle load controls have been established, the exercise is marred by malpractice. Urgent action is required to expand rail capacity, which is a cheaper mode, in order to preserve the road network. 2.3. The Northern Corridor Rail Transport

2.3.1. Analysis of Physical Aspects and Traffic 21. The Northern Corridor rail network currently consists of the rail networks of Kenya and Uganda linking the port of Mombasa with Kasese in western Uganda and Pakwach on the River Nile in north-western Uganda. The total network of Kenya and Uganda is about 3300km, of single line and narrow gauge (1000mm) rail. 22. The condition of the network varies from section to section as indicated below: (i) Mombasa-Nairobi (530km) This section, which is laid with 95lb rail, requires spot improvements and replacement of rails and sleepers. (ii) Nairobi-Malaba (550km) This section requires upgrading to 110lb rails, replacement of sleepers and reconstruction culverts. (iii) Nakuru-Kisumu (217 km) Upgrading of the section, Nakuru-Mau Summit from 60lb to 80lb rail has been undertaken during the past 2 years. The remaining sections (approximately 160km) require upgrading to 80lb rails. (iv) Malaba-Kampala (251 km)

8 Emergency repairs of bad spots (approximately 30km) are currently in progress with financing from the EU. The remaining sections will also require rehabilitation very soon. The Malaba-Kampala section is laid with 80lb rails. (v) Kampala-Kasese (330km) This line is currently closed due to its poor state and requires major rehabilitation, which will entail strengthening of the basement, realignment, reconstruction of culverts and bridges and replacement of rails and sleepers. The necessary studies were carried out and options analysed. (vi) Tororo-Malaba-Soroti-Gulu-Pakwach Line (517km) This line is laid with light materials (50-60lb rails). Insecurity in some areas through which the line passes led to its closure in 1995. However, since this year, the line has been re-opened up to Lira. The intension of the Uganda government is to re-open the line all the way to Pakwach. The line had in the past played a significant role in conveying agricultural produce from Southern Sudan and Northern Uganda to export markets. (vii) Other Sections The rest of the network comprises branch lines such as the Magadi Soda railway, links to Thika, Nanyuki and Butere, within Kenya. 23. The two rail carriers of Uganda and Kenya are mainly engaged in the transportation of imports and exports of the countries of the Northern Corridor. The opportunity available to the railways is represented by traffic volumes passing through the port of Mombasa, which has grown from 8.5 million tons in 1998 to nearly 12 million tons in 2003 as shown in Table 2 below, representing an average annual growth rate of 7%. Table 2: Mombasa Port throughput 1998-2003 (million tons) Year 1998 1999 2000 7.47 1.45 0.20 9.13 2001 8.18 2.12 0.30 10.60 2002 8.01 2.22 0.34 10.56 2003 8.87 2.45 0.61 11.93 Growth % p.a 4.2 17.6 42.6 7.2

Domestic 7.32 6.74 Transit 1.13 1.31 Transhipmen 0.11 0.14 t TOTAL 8.56 8.16 Source: Kenya Ports Authority

24. Similarly, transit traffic to and from the landlocked countries has more than doubled in the last 5 years as shown in Table 3 below. Transit traffic grew from 1.13 million tons in 1998 to 2.45 million tons in 2003, representing an annual

9 average growth rate of nearly 18%. For the year 2004, transit traffic was 2.89 million tons. 25. Whereas the market share of rail transport has declined to less than 30% of the total traffic, it is envisaged that following the concession of the Kenya/Uganda, the total traffic carried by the two rail networks (currently approximately 3 million tons) would double within the next five years. Projected business performance Road/Rail modal split, during the next 20 years is as depicted in Table 4 below: Table 3: tons) Country Uganda Tanzania Burundi Rwanda Sudan Congo DR Others TOTAL %chang e Mombasa Port Transit Traffic by Country 1998-2003 in (000s 1998 841.9 57.7 1.2 94.4 52.2 59.5 20.1 1126.8 1999 1012.6 63.3 4.2 109.3 46.3 52.4 21.8 1310.0 16.2 2000 1114.6 93.2 2.3 71.7 45.1 76.3 51.2 1454.3 11.0 2001 1669.8 145.9 6.8 109.1 67.4 68.5 49.4 2116.8 45.5 2002 1710.1 157.0 28.8 80.8 90.0 100.2 45.1 2214.9 4.6 2003 Growth% 1893.7 181.8 4.2 176.8 75.3 71.6 49.2 2452.6 10.7

17.6

Source: Kenya Ports Authority

Table 4: Projected Road/Rail Modal Split 2004-2024 (000s tons) Year 2003 2009 2014 2019 2024 Total Traffic 11,930 14,910 18,640 23,300 29,120 Road 8,295 7,465 9,320 11,150 14,560 Rail 2,975 7,465 9,320 11,150 14,560 % Rail 25 50 50 50 50

Source: Kenya Railways Corporation

2.3.2. Institutional Reform Aspects 26. Currently the railways in the region are 100% government owned and their management still in the public sector. However, concession has been adopted by the countries in the region as a viable way of attracting both short to medium capital, as well as management skills in the rail sector. It is in line with this policy

10 that Kenya and Uganda have made substantial progress toward the joint concession of their railways. 27. Seven firms pre-qualified in October 2004 have undertaken due diligence assessments, with a view to preparing their bids to be submitted by August 2005. Thereafter, the most technically and financially competent firm will be selected, leading to the signing of the Concession Agreement for a period of 25 years, with targeted commencement date of December 2005. 28. While the concession agreement will lead to handing over to the concessionaire a large portion of the Kenya/Uganda rail network, not all sections will be covered. In addition, the development of rail infrastructure will remain the responsibility of the governments. The extension of the Northern Corridor rail network should therefore be viewed in this context. Nevertheless, various financing options, including as BOTs are to be promoted by the governments. Joint public and private sector partnerships are considered to be one of the viable options. 2.3.3. Financial Aspects 29. Analysis of the accounts for the past five years of Kenya and Uganda railways companies are being compiled and will be incorporated in these terms of reference as soon as the figures become available. 2.4. Multi-modal Transport in the Northern Corridor Countries

30. As indicated earlier, the Northern Corridor is a multi-modal transport corridor where a combination of surface transport modes is in use. 2.5. Maritime Transport and Ports of the Northern Corridor Countries

2.5.1. Mombasa Port Cargo Traffic 30. The primary port is the Mombasa port, whose total throughput, for the past six years, is depicted in Table 2, under section 2.3.1. The following table shows cargo traffic by major products.

2.5.2. Analysis of Transit Traffic to Landlocked Countries Table 5: Traffic handled at the Port of Mombasa by major category (000s) DWT Year 1998 1999 2000 2001 2002 2003

11 Dry General 5,065 3,723 Cargo Dry Bulk Cargo 827 1,401 Total Dry Cargo 5,892 5,133 P.O.L. in Bulk 2,338 2,521 Bunker Oils 32 139 Other Bulk Liquids 193 252 Total Bulk 2,563 2912 Liquids Total Imports & 8,455 8045 Exports Transhipment 106 143 GRAND TOTAL 8,561 8,188 Source: Kenya Ports Authority 3,806 1,421 5,227 3,232 93 378 3,703 8,930 196 9,126 4,429 1,378 5,807 3,920 105 466 4,490 10,297 303 10,600 4,527 1,562 6,089 3,594 100 440 4,134 10,224 240 10,564 4,781 1,783 6,564 4,147 75 540 4,762 11,326 605 11,931

31. The table below depicts import and export traffic for the period 1998 to 2003: Table 6: Mombasa Port Transit Traffic by Country in Metric Tons
Country Direction 1998 Imports 650,529 UGANDA Exports 191,372 Total 841,901 Imports 40,987 TANZANIA Exports 16,714 Total 57,701 Imports 1,169 BURUNDI Exports Total 1,169 Imports 83,306 RWANDA Exports 11,066 Total 94,372 Imports 51,832 SUDAN Exports 330 Total 52,162 Imports 42,707 D.R. CONGO Exports 16,751 Total 59,458 Imports 17,595 OTHERS Exports 2,474 Total 20,069 Imports 888,125 TOTAL Exports 238,707 Total 1,126,832 Source: Kenya Ports Authority (KPA) 1999 777,442 235,139 1,012,581 50,979 12,343 63,322 3,403 846 4,249 91,421 17,866 109,287 46,349 46,349 42,250 10,127 52,377 13,031 8,795 21,826 1,024,875 285,116 1,309,991 2000 898,850 215,736 1,114,586 78,699 14,455 93,154 1,783 538 2,321 51,130 20,584 71,714 45,030 44 45,074 26,875 49,418 76,293 50,985 198 51,183 1,153,352 300,973 1,454,325 2001 1,452,341 217,475 1,669,816 126,125 19,809 145,934 2,939 3,827 6,766 88,457 20,610 109,067 67,197 174 67,371 57,220 11,299 68,519 49,248 121 49,369 1,843,527 273,315 2,116,842 2002 1,426,772 283,326 1,710,098 134,809 22,160 156,969 24,738 4,022 28,760 66,241 14,581 80,822 92,836 163 92,999 85,575 14,650 100,225 43,668 1,416 45,084 1,874,639 340,318 2,214,957 2003 1,676,918 216,772 1,893,690 161,466 20,314 181,780 2,791 1,414 4,205 164,021 12,781 176,802 75,019 308 75,327 57,129 14,462 71,591 49,061 135 49,196 2,186,405 266,186 2,452,591

2.6.

Air Transport

12 32. Air transport plays a significant role in the movement of passengers between the member States of the Northern Corridor, with little freight transport between the countries. However, in the case of the eastern part of the DRC, air transport is used to carry freight between the major urban centres, due to lack of rail and road links. 33. The air transport industry in all the Northern Corridor countries have been liberalized in accordance with the Yamoussoukro Declaration and the COMESA open skies policy. This has led to the formation of a number of private airline companies to fill the void left by the collapse of some of the national carriers. The liberalized environment has also enabled the surviving national carriers to enter into partnership with private carriers, both locally and internationally. 34. This trend is likely to continue as governments move away from ownership and operation of transport companies. 2.7. Inland Waterways Transport in the Great Lakes Region

35. The Great Lakes region possesses unutilized potential in inland waterways transport services. There are major lakes, such as Lake Victoria, Lake Tanganyika, Lake Kivu, Lake Edward and Lake Albert. In addition, there are three major rivers which add to this potential, namely River Nile, River Congo and River Akagera. 36. The study will determine the necessary links between the proposed rail extension and the utilization of the inland waterways. In this regard, there will be need to examine necessary improvements to existing port facilities on the River Congo, which links Kisangani with the port of Matadi on the Atlantic coast. 2.8. Transport Policy

37. The TTCA Strategic Plan calls the harmonization of transport policies and regulations of the Northern Corridor countries. In this regard, it is worthy noting that substantial progress has been made in the following areas: Simplification and harmonization of customs documentation and procedures Elimination of the remaining non-physical barriers to traffic and trade Establishment of joint controls at the major border posts in order to convert them into one-stop border posts Upgrading of transport infrastructure and facilities, through the promotion of public, private partnerships in their provision and maintenance Promotion of rail transport as a cheaper, safer and more environmentally friendly mode, for long distance bulk haulage Reduction of corrupt practices along the corridor, with a view to reducing transportation costs

13 Application of ICT to enhance efficiency and information exchange

3. 3.1.

PROPOSED STUDY Formulation

3.1.1. General formulation of the study 38. The study was recommended by the extra-ordinary meeting of the TTCA Council of Ministers held in Nairobi on 5th August 2004. The Nairobi meeting also agreed to the establishment of a Steering Committee to comprise Permanent Secretaries and other officials from the member States, as well as representatives of the African Union, COMESA, East African Community, the Economic Commission for Africa and the African Development Bank. The TTCA Secretariat would coordinate the work of the Committee. 3.1.2. Donor Coordination

39. The Extra-Ordinary meeting of the TTCA Council of Ministers also requested the African Development Bank to take the lead in mobilising resources for the project. In this regard, it is anticipated that the AfDB will liaise with multilateral and bilateral aid agencies, such as the European Union, USAID, DFID, DANIDA, NORAD, JICA, SIDA, etc. in mobilising necessary resources for the project, including private sector investments. 3.2. 40. Objectives of the Study The study has the following objectives: (i) Study the existing rail networks with a view to determining the necessary intervention to strengthen the network; Determine whether it is necessary to move from the current 1000mm gauge to wider gauges and the cost implications of the selected gauge; Survey the proposed rail extensions to Kisangani and the links to Goma, Kigali, Bukavu and Bujumbura, with a view to determining the most suitable alignment and routing of the proposed links; Assess necessary improvements of the inland waterways facilities associated with the project, including the expansion of the Kisangani port;

(ii)

(iii)

(iv)

14 (v) Provide the cost estimates of the proposed extensions and advise on the appropriate phasing of the works, taking into account economic and financial considerations; Make a preliminary assessment of the impact to the environment of the proposed rail extensions. Advise on the most suitable financing options, including public, private partnerships and management structure of the rail networks. Undertake cost benefit analysis of the project, including a comparison of long-term costs of construction and maintenance of roads and railways;

(vi)

(vii)

(viii)

3.3.

Description of the Study

3.3.1. Detailed description of the content of the study and definition of expected results 41. The study objectives listed above broadly describe the study. Given the above objectives, the following are the expected results of the study: (i) Determination of the necessary improvements to sections of the existing rail network; Recommendation on the most appropriate gauge for the Northern Corridor rail network; Determination of the most cost effective alignment of the proposed rail extensions, clearly indicating the likely costs and benefits of the alignment options; Recommendation on the options that should be advanced to full feasibility and engineering design studies; Traffic forecasts for the proposed rail extensions; Determination of the likely synergies between the proposed Northern Corridor rail extension and similar regional initiatives; Recommendation on the necessary improvements to related infrastructure and facilities, such as inland waterways and ports, including cost estimates of such improvements; Environmental impact analysis of the project and recommendations on mitigation measures;

(ii)

(iii)

(iv)

(v) (vi)

(vii)

(viii)

15

(ix)

Determination of economic benefits of the recommended improvements to existing rail networks, as well as the proposed extensions; Recommendations on the most appropriate financing mechanisms, as well as the management structure of the proposed rail extensions.

(x)

3.4.

Estimated Costs of the Study

42. The Study is estimated to cost US$ 1,121,750.00, whose breakdown is as shown in the Annex.

4. 4.1.

ORGANISATION AND MANAGEMENT OF THE STUDY Implementing Organ

43. The study will be undertaken under the auspices of the TTCA, which is the implementing and coordinating organ. 4.2. Coordination and Management of the Study

45. In line with the resolutions of the extra-ordinary meeting of the Authority, a Project Steering Committee will be established to comprise the Permanent Secretaries and technical officials from the member States, as well as representatives from the African Union, AfDB, COMESA, ECA and the East African Community. 4.3. Provisional duration for the implementation of the study

46. The study will be carried out over a period not exceeding six months. We propose the following timetable for carrying out the study:: Organ(s) responsible Mobilising the finance Member States, TTCA, Donors Recruitment of the cabinet of TTCA, Steering consultants Committee Start of the Study Consultant Completion of the study Consultant Adoption of the report TTCA, Steering Committee Activity or Event Proposed timetable April 2007 July 2007 August 2007 February 2008 March 2008

1. 2. 3. 4. 5.

16

5. 5.1.

JUSTIFICATION OF THE STUDY Reason for the study

47. The objectives of the study already outlined under section 3, provide the reasons for the study. 5.2. Traffic for the last five years

48. The traffic carried by the Kenya and Uganda railway companies along the Northern Corridor, during the period 1999 to 2003 is as shown in the tables below: Table 7: Total Traffic Carried by KRC and URC 1999 to 2003 (tons) Year 1999 2000 2001 2002 2003 Kenya Railways 2,264,67 2,440,78 2,235,39 2,255,76 1,996,584 Uganda Railways 0 6 0 5 595,491 510,959 527,127 583,445 623,430 Total 2,775,62 2,967,91 2,818,83 2,879,19 2,592,075 9 3 5 5
Source: Kenya Railways, Uganda Railways

Table 8: Uganda Transit Traffic carried by Rail and Road 1999-2003 (tons) Year Total Traffic Road Rail % Rail 1999 2000 2001 2002 2003 429,682.03 412,218.97 48.96 624,803.00 387,778.00 38.30 1,203,607.7 466,208.30 27.92 0 480,914.50 28.12 1,229,183.5 505,469.40 26.69 0 1,388,220.6 0 Total 7,400,771.00 4,875,496.8 2,252,589.1 30.44 0 0 Sources: Kenya Ports Authority, Kenya Railways, Uganda Railways 5.3. Projected Rail Traffic on the Mombasa-Kampala-Kisangani Railway Line 49. Table 4 above gives traffic projections for the Kenya Uganda Railways up to the year 2024. Traffic projections for the new rail extensions will be provided by the study. 1,012,581.00 1,114,586.00 1,669,816.00 1,710,098.00 1,893,690.00

17 5.4. Benefits of the study

50. There are complimentary initiatives in the Great Lakes region, which include the proposed COMESA Great Lakes Railway Project and the proposed extension of the railway from Isaka in Tanzania to Kigali, Rwanda. The study will clearly determine the synergies between the extension of the Northern Corridor rail network, vis--vis the other regional initiatives. 51. The study will also help in the selection of optional alignments for further investigation at feasibility and detailed engineering design levels.

ANNEX
DETAILED COST ESTIMATES OF THE STUDY NUMBER No DESIGNATION In the field Home Office Unit Price $ Total Amount $

1 HONORARIUM 1.1 Key Staff Project Director (at the headquarters of the consultant Chief of Mission (Rail Engineer) Rail Engineer Specialist of rail operations Geo-technical Engineer/ Geology Engineer Hydrology Engineer Transport Economist Socio-Economist Expert in Environment Others 1.2 Support Personnel Secretary Driver Messenger SUB TOTAL HONORARIUM 2 ACTIVITIES AND FIELD WORKS Topography Cartography Geo-technology Miscellaneous SUB TOTAL FIELD WORKS 3 PER DIEM, LOGISTICS AND TRAVELS Per Diem

0.5mm 4 4 2 3 3 2 1 1 2 6 6 6

1.0mm 2 2 2 1 1 2 1 1 2 -

10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 1,500 1,200 1,000

15,750 63,000 63,000 42,000 42,000 42,000 42,000 21,000 21,000 42,000 9,000 7,200 6,000 415,950 50,000 50,000 50,000 7,500 157,500

700days

250

175,000

18
Air Transport Surface Transport Computers and related office work Reproduction and expeditions Office location Communications Miscellaneous SUB TOTAL ITEM 3 SEMINAR ON THE OUTCOME OF THE STUDY COORDINATION AND MANAGEMENT (Project Steering Committee Miscellaneous (communication, etc) BASIC COSTS (1+2+3+4+5) Physical miscellaneous Financial risks/ shortcomings GROSS TOTAL - duty free (6+7+8) Tax elements Total all taxes inclusive (9+ tax elements) 30 trips 15 units 1000 1500 30,000 30,000 22,500 20,000 10,000 20,000 12,875 320,375 30,000 50,000

4 5

5,000 978,825 42,850 45,000 1,066,675 55,075 1,121,750

6 7 8 9

10

19

Annex III :
PROPOSED EXTENSION OF THE TTCA RAIL NETWORK ENDORSED BY THE AUTHORITY